Ch 17 Final Exam Prep Property Management
For a statement to be considered libel, it must be uttered. written. uttered and written. untrue and published.
"untrue and published" - would be part of Defamation Libel is a written defamatory statement, and slander is an oral defamatory statement Libel - written untruth that is published/disseminated by some means.
If a rental property's sale price is $500,000 and its adjusted basis is $600,000, what is the gain or loss? $100,000 gain $100,000 loss 83% gain 83% loss
$100,000 loss Property is being sold, but has not been adjusted for renovations, appreciation, etc. the sale would be a loss of the adjusted amount
If a commercial rental property is valued at $5,850,000, how much can the owner deduct for depreciation on his annual income taxes?
$150,000 =5,850,000 (1/39) =150,000
How much does the FDIC insure deposits made into credit union trust accounts?
$250,000 Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category
If business partners Joe and John have a joint trust account, how much of their $1,000,000 account balance is insured under the FDIC? A Joint Trust is a single Trust document that covers both spouses and offers provisions for what happens upon the death of each.
$250,000 Each account is insured by the FDIC
If a rental property has an NOI of $250,000 with a cap rate of 8%, what price should an investor pay for the property? $3,125,000 $2,000,000 $275,100 $1,250,000
$3,125,000 New Value = NOI/ cap rate New Value = 250,000/0.08 New Value = $3,125,000
How would the variable expense ratio be determined for a rental property with $400,000 in variable expenses, $950,000 in potential rental income, $250,000 in debt service, and $225,000 in fixed operating expenses?
$400,000 / $950,000
What is the per-unit management fee when the total management costs for 1 year are $500,000, the number of units the manager is capable of managing is 75, and the profit margin is 20%?
$8,000 =(500,000/75)* 1.20 =8,000
Calculate the percentage rate management fees on the following: $575 adjusted per-unit fee, 50 total units, $600,000 annual gross income, 15% vacancy and loss rate. 8% 6% 10% 3%
6% =(575*50)/ (600,000*.85) =5.6% ~6%
In which accounting method are expenses and revenues not matched in time?
Accrual Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs versus when payment is received or made.
The following is not a type of staff. Management (Staff) Agency (contractor) Administrative (Staff) Maintenance (Contractor staff)
Agency
A lease clause that waives the right to hold the landlord liable for personal injury is called demising clause. exculpatory clause. caveat emptor buyer beware clause.
An exculpatory clause is part of a contract that prevents one party from holding the other party liable for damages related to the contract. Exculpatory clauses are used quite often in purchases such as the ones included with an amusement park or plane ticket.
In what type of ADR is the decision by the third party binding? Mediation Arbitration Distributive negotiation Neutral evaluation
Arbitration In arbitration, the third party (an arbitrator or several arbitrators) will play an important role as it will render an arbitration award that will be binding on the parties.
Which type of report should include beginning and ending arrears, resident charges, paid YTD, and other fees? Balance sheet Rent roll Budget variance Delinquencies
Balance sheet
Which type of report includes rental income, expense recoveries, operating expenses, and other revenue? Balance sheet: a company's assets, liabilities, and shareholders' equity Rent roll: find potential revenue opportunities, and look for issues such as high turnover and vacancy rates Budget variance: instances where actual costs are either higher or lower than the standard or projected costs Delinquencies: the state of being past due on a debt
Balance sheet In general, they use Schedule E (Form 1040) to report income and expenses from rental real estate.
If a rental property's fixed operating expenses are $234,000, debt service is $120,000, potential rental income is $555,000, and NOI is $315,000, what is the breakeven ratio? 61% 64% 79% 83%
Breakeven ratio BRE = (Annual OE + Annual Debt Service)/Annual Gross rent BRE = (234,000+120,000)/555,000 BRE= 63.7% BRE = 64%
The three types of business interruption endorsements do not include Limited business interruption Extended business interruption Contingent business interruption Business interruption
Business interruption
Which of the following is exempt from the ADA's requirements for public accommodations?
Churches exempt entities include private clubs; religious organizations and the daycares, schools, and other facilities they may run; places of worship; and other facilities considered to be historically exempt from civil rights law.
Which of the following is not one of the basic elements of advertising? The right market The profile of renters The right media Constant advertising
Constant advertising Ch 4: & Ch 13: Basic marketing principles -Manager must know basic elements of advertising, who target audience is, what the message is, and the advertising budget. -Object is to reach as many potential tenants as possible, not as many people as possible. -Advertising medium includes print ads, web marketing, For Rent signs, and Yellow Pages ads. -Manager must keep fair housing and anti-discrimination laws in mind when advertising.
Which lease provision provides that no one has superior title to that of the landlord? Right of first refusal Explanation of use Covenant of quiet enjoyment Assignment
Covenant of Quiet Title: The landlord is also obliged to ensure that no one claiming superior title disturbs the tenant's possession and use of the property during the lease term.
Which of the following will not increase NOI? Increase GOI [NOI = GOI- Operating expenses] Decrease debt service Decrease operating expenses (Will increase revenues which will increase NOI) Increase potential rental income (will increase NOI) [NOI + Operating expenses = GOI]
Decrease debt service
Which of the following sets of steps in correct order? Determine working relationship; submit and approve proposal; decide to manage property; sign management agreement Submit management proposal; determine working relationship; sign management agreement; decide to manage the property Determine working relationship; decide to manage property; submit management proposal; sign agreement Decide to manage the property; submit proposal; determine working relationship; sign contract
Determine working relationship; decide to manage property; submit management proposal; sign agreement
Which type of leasehold has a definite beginning and ending date, does not require notice to terminate at the end of the terms, and does not have an automatic renewal? Estate for Years Estate from Period-to-Period Estate at Will Estate at Sufferance
Estate for Years An estate for years is a lease with a specific beginning and ending date. The lease is for a definite, often extended, period of time, and notice isn't required to vacate, as it's known that the tenant will vacate at the end of the lease
Which of the following is not part of the crux of a marketing plan? Who the customers are What might the service represent to them How much will the service cost them How to tap into the customer's perception crux: main point; the heart of the matter Who the customers are, what does the product or service represent to them, and how to tap into that perception
How much will the service cost them Ch 8 - Marketing Plan: - sign contracts and/or leases, -inspect properties, -contract vendors and -service personnel, -communicate with tenants, -hire and -supervise employees, -forecast business or property growth, -manage collections and -payments, -provide periodic reports to the owner, in California, the property manager must be a licensed real estate broker.
Which professional organization offers a Certified Apartment Manager certification?
IREM Institute of Real Estate Management
Unsure If the landlord mails a 30-day notice to the tenant informing the tenant of a rent increase, when can the increase legally take effect?
In 30 days for first rate increase 60 days if its a second/ reoccurring increase
Incorrect Some management contracts require the total management fee for the life of the contract be paid upfront as a pre-requisite to what? Contract signing Approval of the management plan Early termination of the contract Filing suit for breach of contract
Incorrect Early termination of the contract Approval of the management plan
Incorrect: When marketing an office property, the manager need not understand the market. know the customer's budget. know the competition. understand the customer's wants.
Incorrect know the customer's budget. understand the customer's wants.
Incorrect Property management software systems would not typically include applications for budgeting. marketing. payroll. maintenance. Property management software - Rental properties - Accounts - Renters - Owners - Financials (Budgeting) - Maintenance
Incorrect marketing. Payroll Ch 8 Property management software: - accounting and reporting - tenant and lease tracking, - budgeting - maintenance - online tenant services, - automatic vacancy postings, - integrated web and marketing tools; - should generate rental ledger and rent roll
Incorrect: A(n) ___________ analysis will help the manager balance the income goal for the property with the occupancy potential. property alternatives neighborhood market
Incorrect: Market alternatives Chapter 3: Alternatives When analyzing the alternatives, the manager is looking at the possibilities for the property and addressing issues and concerns to meet the owner's goals. This analysis should determine if the proposed changes will increase the property's net operating income which will, in turn, increase the owner's profit. Since each option to increase the property's value and the owner's return on investment may carry an associated cost, the manager must determine the economic benefits associated with that cost. The issues the manager addresses may be ones the property is currently experiencing, ones specific to future developments that may impact the property, or potential improvements and value enhancements. The first proposed course of action may be to leave everything in its current condition. Other alternatives can range from minor changes to substantial changes.
Incorrect Which of the following would not be considered an architectural barrier? Architectural barriers are physical elements of a facility that impede access by people with disabilities
Incorrect: "Non-working elevator" - This impedes access to those with disabilities
Incorrect Which record should be set up for a 12-month period? Rent roll General ledger Employee file Trust funds(24 months)
Incorrect: Employee file General ledger Employee file: Personnel files usually contain documents that the employee has already reviewed and so he or she is familiar with their content General ledger: Records for every financial transaction of a firm. Can be setup Quarterly & annually (12-month period) Furniture account, salary account, debtor account, owner's equity, etc.
Incorrect Which regulation requires sensitive documents to be protected? Gramm-Leach-Bliley Act FTC Privacy Rule Safeguards Rule FTC Security Rule
Incorrect: FTC Privacy Rule Gramm-Leach-Bliley Act.
Incorrect Under which lease clause should the process and penalty for early termination be included? Options Demising Capacity to contract Clear statement of term
Incorrect: Options Clear statement of term: In American law, the clear statement rule is a guideline for statutory construction, instructing courts to not interpret a statute in a way that will have particular consequences unless the statute makes unmistakably clear its intent to achieve that result. In the termination clause, make sure to include: Minimum notice period. Early termination fees. Written notice requirements
Unsure Which of the following is not included in a property analysis? Tenants Staff Health and safety Relevant market
Incorrect: Relevant market Tenants or Health and Safety A property analysis report: 1) A market analysis of demographic, socio-graphic and geographic data. 2) Physical and economic characteristics of the property such as the physical design, square footage, etc. 3) Purchase pricing including basic cost information, renovation costs and more. 4) Operating expenses to maintain the property such as utilities, property taxes, insurance, repairs and maintenance, licenses, fees and advertising expenses 5) Income information about the revenue the property produces, such as rent receipts 6) Competitive information on how the property compares to other relevant properties in the local market such as age, condition and amenities 7) Financing specifics including any loans, the total loan amount to finance the property, down payment sums, interest rates and closing costs
___________ is directly linked to employment numbers of workers who use the space. Size of property Space demand Property features Space type
Incorrect: Size of property
Incorrect: Which of the following statements is true? Social networking offers the opportunity to replace the existing online and offline presence. Social networking offers the opportunity to provide helpful, relevant information that is useful to a specific group. Social networking offers the opportunity to promote events, promotions, and specials to specific audiences. Social networking offers the opportunity to put a face on a business and show the corporate personality.
Incorrect: Social networking offers the opportunity to provide helpful, relevant information that is useful to a specific group. Social networking offers the opportunity to promote events, promotions, and specials to specific audiences. Social networking is the practice of using a dedicated online platform to maintain contact, interact and collaborate with like-minded individuals, peers, friends and family.
Incorrect Decreasing which of the following expenses will increase NOI? [Net operating income] Debt service Income tax (not part of the NOI) Reserves Staff salaries and Benefits
Incorrect: Staff salaries and benefits Debt service Net operating income (NOI/ EBITDA - Earnings Before Interest Taxes Depreciation Amortization) measures an income-producing property's profitability before adding in any costs from financing or taxes. To calculate NOI: subtract all operating expenses incurred on a property from all revenue generated on the property. operating expenses include: -repairs - salaries - supplies - rent Market Forces: a) Neighborhood improving? b) Ability to find tenants c) Non-Real Estate Factors d) Rising interest rates
Incorrect If two managers of separate properties get together to talk about how they plan to set their rental rates, is this legal? Yes, it is part of research for their market analyses No, they're not allowed to set the same rental rates No, it violates antitrust laws No, it violates confidentiality laws
Incorrect: Yes, it is part of research for their market analyses No, it violates antitrust laws Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition
A property manager who can be an individual property manager, an individual building manager, or a resident manager and whose job is to find tenants and get leases signed is called a corporate manager. an asset manager. a concierge. will assist guests, patrons, tenants, or employees with personal services such as making dinner and tour reservations, offering suggestions for events, and arranging transportation. a leasing agent.
Incorrect: a corporate manager. a leasing agent. - mainly finds tenants
Incorrect Managing a timeshare is comparable to managing An apartment complex A condo association: responsible for maintaining the common areas and elements of a condo development A cooperative: a farm, business, or other organization which is owned and run jointly by its members, who share the profits or benefits A hotel: providing accommodations, meals, and other services for travelers and tourists
Incorrect: a hotel A cooperative 4 reasons people purchase timeshares flexibility, economy, safety & secure environment, availability
Incorrect If employment in a particular market decreases, interest rates also decrease. demand for low rental rates increases housing demand decreases. rental rates increase.
Incorrect: housing demand decreases. demand for low rental rates increases
Incorrect To create an operating budget for the plan, the manager would not need anticipated revenue. optimum rents. cost-benefit analysis. adjusted income based on anticipated market trends.
Incorrect: optimum rents. cost-benefit analysis. Ch 8: operating budget - Executive Summary - Summary of operating statement - Detailed operating statement - Written explanation - Actual sales & expenses - Fixed expenses - expenses include legal fees, consultants or accountants for short-term projects, or repairs - anticipated revenue, using year-over-year data - Capital Expenditures - Reserve funding
Incorrect: If a tenant's rent is being increased because she contacted the housing authorities about the condition of her rental unit, the landlord should send her a 3-day unlawful detainer notice. the landlord should hurry up and get the unit in good condition before the housing authority visits. the landlord can be sued for actual and punitive damages. the landlord doesn't need to do anything until the housing authority inspects the rental unit
Incorrect: the landlord doesn't need to do anything until the housing authority inspects the rental unit the landlord can be sued for actual and punitive damages. punitive damages: damages exceeding simple compensation and awarded to punish the defendant.
Incorrect Security needs for retail properties are not necessarily determined by location. business hours. available security technology. size of property.
Incorrectsize of property. location.
Which of the following is not included when determining management fees? Shared costs Indirect costs Direct Costs Profit
Indirect costs
Unsure When performing a regional and neighborhood analysis for marketing retail property, a manager does not consider local demographics. transportation issues. local climate. tenant space needs.
Local Climate Manger is looking for: - occupancy rates - market rental rates - general employment levels, - for residential property, family size and lifestyle. Neighborhood analysis: This information includes the economic status of the residents, the occupancy rate, whether the population is increasing or decreasing, and how well the properties are maintained. Regional Analysis: information about the city or metropolitan area in which the property is located. This information includes data on trends in occupancy rates, market rental rates, general employment levels, and family size and lifestyle.
A department store with offices on the second level is what type of property?
Mixed-use
Property owner Sue leased a property to tenant Sam who negotiated a lease provision for making alterations to the building. Within 1 week of leasing the property, Sam hired a contractor to perform the alterations. Sue did not want to be held responsible if Sam failed to pay the contractor, so she had her property manager file and post a notice of non-responsibility. Will the notice protect Sue from a mechanic's lien if Sam does not pay the contractor? Yes, if it was posted within 10 days of the work starting No, because by including the provision in the lease, Sue was contracting for the work No, because the notice was filed and posted by the manager and not the owner No, because Sue had knowledge of the work when the lease was signed
No, because Sue had knowledge of the work when the lease was signed
Community association managers in California are required to have what kind of license?
None California managers are unregulated, with no required license or minimum education. While rental managers must have real estate broker licenses, HOA managers do not There is no requirement that a community association manager in California have a real estate broker's license. However, voluntary certification, known as "Certified CID Manager," is available.
Which records should be retained for 3 years? General ledger balances Licenses and permits Correspondence with clients Purchase orders
Purchase orders A licensed real estate broker shall retain for three years copies of all listings, deposit receipts, canceled checks, trust records, and other documents executed by him or her or obtained by him or her in connection with any transactions for which a real estate Keep everyday paperwork for 3 years - Monthly financial statements. - Credit card statements. - Utility records. - Employment applications (for businesses) - Medical bills (in case of insurance disputes)
If a rental property owner invested $450,000 into a property with an annual NOI of $40,000, annual operating expenses of $25,000, and monthly debt service of $2,000, what is the owner's ROI? 8.80% 62% 5.50% 5.30%
ROI = NOI/ Cost of Investment *100 RIO = 40,000/450,000 8.80%
Unsure Linda is married to Sgt. John Walters of the US Marine Corp. While John has been deployed overseas, Linda has been unable to pay her $1500 monthly rent. What could potentially happen as a result of her non payment of rent?
She would be protected under the Soldiers' and Sailors' Civil Relief Act. rental agreements, security deposits, prepaid rent, evictions, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, civil judicial proceedings, automobile leases, life insurance, health insurance and income tax payments Servicemembers Civil Relief Act (SCRA) & VA Loans: both regular active-duty military members and Guard and Reserve members who've been activated under federal orders, and their spouses.
A photography studio is considered what type of retail tenant?
Specialty
Which California agency monitors the administration of workers' compensation claims?
The Division of Workers' Compensation (DWC) monitors the administration of workers' compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for workers' compensation benefits.
Taking existing inventory footage, subtracting square footage expected to be demolished or condemned, and adding the square footage expected to come on line is required for forecasting demand. forecasting supply. determining load factor. determining space need.
The forecasting of supply requires taking existing inventory footage, subtracting square footage expected to be demolished or condemned, and adding the square footage expected to come on line that is presently somewhere in the pipeline. https://quizlet.com/353414556/chapter-15-commercial-properties-flash-cards/#:~:text=The%20forecasting%20of%20supply%20requires,presently%20somewhere%20in%20the%20pipeline.
Which of the following statements is false? A tenant has the sole right to occupy the premises without interference from the landlord. The landlord cannot place a shed in the property's driveway in such a way that the tenant cannot enter and park on the property. The landlord is obligated to maintain the property's condition. The landlord is not obligated to provide building services.
The landlord is not obligated to provide building services.
Which of the following statements is true?
The owner's goals are the determining factor in the manager's analyses and types of information included in the plan.
Which of the following is not typically a retail user economic concern? Trade area Tenant mix Parking Sales per square foot
Trade area Ch 15: Several items in particular stand out as distinctive for retail users in the way of needs and concerns: - tenant mix, - trade area, - gross leasable area, - common area maintenance, and - percentage rent calculation. Common Retail User Needs Sufficient sales to meet expenses and achieve profits Acceptable expenses by expense category (goods, labor, overhead, real estate, etc.)Reputation and stability of the center to create positive name recognition in the market Attractive trade area in terms of potential customers, buying power, convenient access, etc. Favorable location within the trade area, including drive times, traffic patterns, and other user-specific criteria Favorable site based on tenant mix, drawing power, traffic, and reputation Acceptable competitive conditions-- tenant mix, the user's location within the center, and store frontage Acceptable occupancy costs, including base and percentage rents, utilities, finishing costs, and any other pass-throughs Agreeable lease terms including length, renewals, escalations, concessions, expansion options, parking, etc.
Which law is intended to regulate leasing and management practices of landlords with residential properties?
URLTA Uniform Residential landlord and tenant Act Keep all common areas in a clean and safe condition. Make all repairs and do whatever necessary to keep the premises in a habitable condition. Comply with all applicable and building codes affecting health and safety
An organization that gathers and provides data on vacancy rates, new home construction, housing patterns based on state, county, city, zip code, and other demographic and economic factors is the California Regional Economic Analysis Project US Department of Commerce US Census Bureau Institute of Real Estate Management
US Census Bureau provides data about the nation's people and economy
Which of the following laws does not prohibit property managers from rejecting rental applications because the prospect is on public assistance?
Unruh The Unruh Civil Rights Act (California Civil Code Section 51) provides protection from discrimination by all business establishments in California, including housing and public accommodations, because of age, ancestry, color, disability, national origin, race, religion, sex and sexual orientation.
Unsure: Where would a For Rent sign be most effective? [what is being rented???] Along a major highway In a rural area Near an industrial park On a downtown building
Unsure: Along a major highway :would get the most on-lookers If this is for a apartment/home that either a busy road/highway or downtown location where people interested would inquire further. If this for rent location is for a office unit for example that near an industrial park would then draw interest.
Unsure Use restrictions clause is necessary in an industrial lease to limit the expansion of business. limit area competition protect the property from theft. protect the property from damage.
Unsure: limit the expansion of business. or limit area competition The use clause in a lease tells you how you can utilize your space. It may restrict your lines of business, stipulate office hours that you must adhere to and place restrictions on advertising signage on the premises What is a restriction clause: - Restrictive covenants against competing with an ex-employer - A restrictive covenant is a clause in an employment contract or services agreement that works to prohibit an individual from (among other things) competing with his or her ex-employer for a certain period after he or she has left the business
Unsure Which of the operating budget components should use three columns? Summary operating statement Detailed operating statement Executive summary Written explanation
Unsure: Detailed operating statement Summary operating statement A good format to use includes 3 columns showing the prior year budget, prior year actual and current year budget.
Unsure Which of the following is NOT an exemption to the California licensing requirements for property managers? Property owners who manage their own buildings. Managers who perform real estate acts without compensation A resident manager at a rental complex that consists of 10 or more apartments Managers of hotels
Unsure: Managers who perform real estate acts without compensation A resident manager at a rental complex that consists of 10 or more apartments
Unsure Which of the following statements if false? A risk management plan is the outcome of the risk and cost analysis; True No risk is so remote that it cannot be protected against. Some risks are too expensive to manage. Balancing cost of management with desired result allows the manager to determine how to manage risks.; True
Unsure: No risk is so remote that it cannot be protected against. Maybe: Some risks are too expensive to manage. Your Total Cost of Risk includes 3 major categories of Expenses: Preventative Cost, Direct Cost, and Indirect Cost. Together these equal your Total Cost of Risk.
Unsure: If a boat building company wants to use a lake belonging to a landowner to test their boats, what type of lease would the boat builder need?
Unsure: Proprietary lease Grounds Lease A proprietary lease, also referred to as an occupancy agreement, gives a shareholder in a housing cooperative the right to occupy a particular dwelling unit. Grounds Lease: a lease of land on which the tenant owns a building or is required to build. these are usually long term net leases. lease. a contract between an owner(lessor) of real estate and a tenant(lessee)
Unsure In analyzing alternatives, the manager does not need to consider the projected return on investment. neighborhood characteristics. timing. relevant market.
Unsure: Timing When analyzing the alternatives, the manager is looking at the possibilities for the property and addressing issues and concerns to meet the owner's goals. This analysis should determine if the proposed changes will increase the property's net operating income which will, in turn, increase the owner's profit. Since each option to increase the property's value and the owner's return on investment may carry an associated cost, the manager must determine the economic benefits associated with that cost. 1. Identify the decision to be made. 2. Identify alternative decisions that could be made. 3. Search for information about alternative decisions. 4. Evaluate the consequences of the alternative decisions. 5. Make the decision.
Unsure The following is not a training step. Trainer describes the task. Trainee explains how to do the task. Trainee performs the task. The task is supported in writing.
Unsure: Trainee explains how to do the task. The task is supported in writing.
Unsure: If it is impossible to acquire sufficient information to make an informed decision, what can be the least risky option to take? Using gut feelings Not doing anything Do something because something is always better than nothing. Let someone else make the decision.
Unsure: Using gut feelings or Not doing anything Doing nothing might be the least risky strategy to take.
The following question is acceptable under FEHA. What is the name and address of your son who will be notified in case of emergency? Are you a member of the local gay and lesbian organization that held a recent rally? Since you are a minor, what is your parent's name? Did you shoot anyone when the Army deployed you overseas?
What is the name and address of your son who will be notified in case of emergency?
A property manager should request to be included on the owner's insurance policies as a right of subrogation. a named insured. a claimant. co-insured.
a right of subrogation. Subrogation means, in a legal sense, one party has the right to "step into the shoes" of another party to bring a claim for damages against a negligent third party. To maximize this benefit and to further reduce a landlord's risk of liability, landlords should strongly consider adding their property manager as "Additional Insured" to their insurance policy.
The property manager's primary role is
accomplish the owner's goal.
All tenant maintenance requests should
be in writing. Regardless of your relationship with your landlord, it's important to always put your maintenance request in writing. A maintenance request is a formal letter to landlords for repairs
Single-tenant Office Building
building type. A building for which there is a single lease obligation.
If the sidewalks on the property are constantly covered in snow in the winter, the manager should shovel the sidewalks. hire extra staff to maintain the sidewalks. change the maintenance schedule to have the sidewalks cleared more often during the winter. post warning signs near the sidewalks so tenants will know to be careful.
change the maintenance schedule to have the sidewalks cleared more often during the winter.
A ____________ may contain 20-75 stores including a Target or Home Depot, fast food restaurants, and a quick auto lube center. neighborhood shopping center(5-20 stores) urban pedestrian mall regional shopping center (40-80 stores) community shopping center (15-40 stores)
community shopping center Community shopping centers - These shopping centers typically contain one department or discount store such as Target or Walmart, a grocery store, and/or a home improvement store. They typically range in size from 150,000 to 400,000 square feet and include 20 to 75 other stores, sometimes including fast food restaurants and quick auto lube centers on the exterior of the center.
Replacing broken floor tile is a task under which maintenance procedure?
corrective Corrective maintenance - repairing or replacing broken items; includes: - repairing or replacing roofs, plumbing (second most common repair issue), carpeting and flooring such as tile, hardwood, marble, terrazzo, and laminates; -handling mold and mildew which can require professional remediation if mold is extensive or black; -animals and pests such as bats that need a professional to remove, pigeons that typically cannot be permanently removed, raccoons, rodents that can be gotten rid of by controlling the environment; -insects such as roaches, fleas, and ants, as well as bedbugs which need a professional to remove -termites which can cause extensive damage to the building - emergency repairs which should be planned for by setting aside funding
Capital expenditures differ from operating expenses in that capital expenses
cost more. Capital expenditures are major purchases that will be used beyond the current accounting period in which they're purchased. Operating expenses represent the day-to-day expenses designed to keep a company running.
People should not leave a spare key hidden outside the rental unit because
criminals know the common hiding places.
Professional property management is critical in a shopping center because of the size of the center and
diverse tenant mix.
Sometimes, maintenance employees can be more costly than contractors because
employees receive benefits.
In a formal fiduciary relationship, the trustee is governed by the written trust agreement and by
federal laws
A long-term relationship in which the manager is authorized to sign contracts within the realm of the manager's duties on behalf of the owner, obligating the owner to the terms of the contracts is called special agent relationship. Special agents are hired to perform one specific duty for a client. This is the standard agency relationship for an accountant who does your taxes general agent relationship. It is a fiduciary and consensual relationship between two persons where one person acts on behalf of the other person and where the agent can form legal relationships on behalf of the principal. formal fiduciary relationship. employer-employee relationship.
general agent relationship. It is a fiduciary and consensual relationship between two persons where one person acts on behalf of the other person and where the agent can form legal relationships on behalf of the principal.
A relationship in which the manager only has the authority to act on behalf of the owner in a specific transaction is called
general agent relationship. gives an agent the authority to represent a principal in a single transaction
Larger apartment properties tend to have
high turnover rate and on-site staff.
The landlord does not need to give the tenant a 24-hour notice to enter the rental unit if the landlord is showing the unit to a prospective buyer. if the landlord needs to replace a cracked floor tile. if there is a water leak within the unit. if the landlord is showing the unit to a contractor to replace the carpeting.
if there is a water leak within the unit Emergency: If there is a genuine emergency that effects the health or safety of the tenant or in an emergency that requires immediate protection of the premises from damage, the landlord may enter the unit without giving a twenty-four hour written notice. Cal. Civ. Code § 1954(e)(1)
The most important record the manager must keep for reporting to the owner is
income and expense records
When setting up a maintenance plan for a retail center, the property manager does not need to consider
interiors of leased spaces.
Allowable interview questions in California include questions or statements regarding
legal right to work within the U.S.
In a ____________, just the essential facts are recorded, not the entire lease. sublease memorandum of lease clear statement of terms demising clause
memorandum of lease A document that references the basic terms of a lease but typically does not include all of the details of the agreement. A memorandum of lease is acceptable for recordation of the tenant's interest.
A shopping center with a group of chain stores that are not related to one another and are each a dominant player in its own line of business is called
power shopping center.
Favorable tax structures are tenant locational considerations. property owner needs. linked to employee density. linked to labor supply.
property owner needs. fairness, adequacy, simplicity, transparency, and administrative ease.
OSHA regulates meal and rest breaks. family medical leave. drug and alcohol testing. workplace safety.
safety in the workplace
Unsure The official unit of housing demand is the household employment supply. economic condition.
supply
Occupancy and vacancy rates are a direct reflection of rental rates. supply and demand. property condition. management policies.
supply and demand. Vacancy rates are a main indicator of the strength of individual rental markets and are influenced by supply and demand.
Negative cash flow situations typically do not result in
tenant services remaining satisfactory.
If a manager breaches a property management contract, the owner should withhold the manager's compensation. terminate the contract. notify the tenants of the breach. sue the manager.
terminate the contract. Chapter 2: Owner should terminate if manager breaches contract
With commercial property abandonment, the law requires the landlord to suspect the tenant has abandoned the property. the tenant to have turned off the utilities. the tenant to have demonstrated an intent to abandon. the landlord to enter the property to confirm the tenant has abandoned.
the tenant to have demonstrated an intent to abandon. 1) First, the tenant must be at least 14 days behind in rent. 2) Second, the landlord must have a reasonable belief that the tenant has abandoned the property